The things you need to know about your income
It’s almost impossible to guess what the Chancellor of the Exchequer is going to talk about in the Budget every year, and this year’s budget didn’t throw up many surprises. But it will mean that if you are employed or self-employed, your income is likely to increase from 5th April 2019. Why is this?
The personal allowance is going up from £11,850 to £12,500. This means that if you earn over £12,500, you will have an extra £130 in your pocket every year.
The basic rate band is going up to £37,500. This means that if you earn over £50,000, not only will you get an extra £130 in your pocket, you’ll also get another £730 in your pocket.
Overall, up to another £860 a year if you earn over £50,000.
But how could you earn more?
The Pension
For every £100 you put into a pension, the government add £25*. That’s 25% interest, straight away. Sound too good to be true? It is! And on top of that, your employer may also match your contribution! Even better!
This is just for people earning below £50,000! If you earn above £50,000, you could save even more;
You could save 40% tax on every contribution.
If your company offer a salary sacrifice arrangement, you could also reduce your National Insurance Contributions, and those of your employer. Your employer should actively want you to pay more into your pension, as it will save on their National Insurance contributions, so they may even put more into your pension if you also put more in.
You could pay into a pension to reduce your wage and therefore be able to claim Child Benefit where you might not otherwise have been able to.
Contact Fernleigh Wearden & Co in #Preston #Lancashire for a review of your specific financial situation. #financialadvice
Telephone: 01772 864314
Email: fernleigh.wearden@gmail.com
Website: www.fernleighwearden.co.uk
* Every individual circumstance is different and you should seek financial advice. This is based on you earning more than you are contributing to a pension, and may be restricted if you earn above £110,000. You may also be restricted by annual allowance rules if you plan to contribute more than £40,000. This document is not to be seen as a personal recommendation, as everybody’s situation is different.
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